Is the risk of account closure lower if CSP app was approved after review instead of instantly?

[Anonymous]

This past week I went an unintentional/unplanned spree and I'm concerned about potential account closure by Chase (or any of the other issuers for that matter, but Chase is more stringent).

Here's a breakdown/timeline of events:

• Saturday August 7th: Applied to Citi Costco Anywhere. HP from Equifax (708) and was denied.

• Saturday August 7th: Applied to Bank of America Customized Cash Rewards. HP from Experian (666) and was denied.

• Somewhere between Saturday and Tuesday Experian updated score and increased to 720.

• Tuesday Augusts 10th: Called Bank of America reconsideration line, requested they pull from Transunion (712) as to reconsider and was approved.

• Wednesday Augusts 11th: Called Citi reconsideration line, requested they pull from Experian (720) as to reconsider and was approved.

• Wednesday Augusts 11th: Applied to Chase Sapphire Preferred. HP from Transunion (708) and Experian (720). Got an email with this message: "We have received your request for a Chase credit card. We'll let you know our decision by U.S. mail. This could take up to 30 days."

• Thursday Augusts 12th: Applied to AMEX Blue Cash Preferred. HP from Experian (720) and was approved.

• Friday Augusts 13th: Called Citi because I thought I could request that they use the credit report pulled from the Costco Anywhere Card approval to approve me for Double Cash. They told me it needed to be a new application so I submitted a new one over the phone and was approved.

• Friday Augusts 13th: Got and email from Chase with this message: "Congratulations. We have approved your request for a Chase credit card." I called and everything was in order. I requested expedite shipment of card which should arrive between Tuesday and Wednesday.

I've read a few DPs about Chase closing accounts after approval. Sometimes within days, weeks and even a month after approval. From what I've read it has something to do with post-approval reviews, manual reviews, post-approval soft pulls and things of the sort. From my understanding, the common denominator in those DPs has been more than one application for Chase cards as opposed to more than one application at different issuers.

Considering my application was not immediately approved, but was approved after review, is it still possible for my account to be closed or is it less likely given how the approval was done? Thanks in advance for reading and replying.

[simplynoir]

Welcome to the forums, @Anonymous 

So I gotta say that is a lot of activity in a short period of time. The softpull reviews will be interesting with Chase once those new accounts report because they didn't see the three new cards at the time they reviewed your application, this does not go into the hardpulls from other bureaus you ask for when doing the recons on the other denials. That and the other banks as well

I would just lay low, use your cards as you normally would, and cross your fingers that none of the banks decide to have second thoughts on the credit they extended you. To be frank the fact you went full YOLO on getting FIVE cards in a span of a few weeks it would not surprise me if a card or two was closed because of that. This isn't a few years ago where it would be okay, this is a different financial environment and banks are twitchy at the best of times

Good luck and hope all goes well

[Brian_Earl_Spilner]

Chase will more than likely close the card when they do their follow up review in a few weeks. It has nothing to do with how many chase cards you opened. They look at your overall report and there was significant activity since the time of your application. 

[Anonymous]

Thanks for warm welcome, as well as for taking the time to review my post and reply. To the best of your knowledge, is that post-approval soft pull a given and usually how long after approval is it done?

Thanks again!

[Anonymous]

Also, if the account does turn out to be closed at some point, will that affect my possibilities of being approved for a Chase card later on?

I actually went ahead and applied to all the other cards because I was sure that I was not going to be approved for the CSP. I knew I was already 5/24 so I had made peace with waiting 25 months to become eligible to apply. That still applies, so I'm just worried of how a potential closure might affect might possibilities in a future where I'm eligible to apply again.

[Yasselife]

@Anonymous    I would be concerned too. The new accounts haven't posted yet but once they do the algorithm may raise an eyebrow on you. Not sure what else to tell you other than wait and pray to the Lord.

[Remedios]

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@Anonymous wrote:

Also, if the account does turn out to be closed at some point, will that affect my possibilities of being approved for a Chase card later on?

I actually went ahead and applied to all the other cards because I was sure that I was not going to be approved for the CSP. I knew I was already 5/24 so I had made peace with waiting 25 months to become eligible to apply. That still applies, so I'm just worried of how a potential closure might affect might possibilities in a future where I'm eligible to apply again.

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Yes, it would affect future applications for considerable period of time.

I'm aware of at least three members who had their cards closed in 2018, and are still getting "unsatisfactory previous relationship" as a reason for denial.

There is nothing you can do about that right now, it's a done deal. 

Chase will start SPs very close to approval,and you can expect to see SP approximately at 2 weeks intervals for about 8 weeks.

Additionally, Chase uses Experian Alerts service, so if there were conditions set at approval (you wouldn't be aware of those) such as "Notify is X amount of new accounts appear within set time span" (paraphrasing), they might act sooner or not at all. 

Given the fact your first two approvals were actually denials indicating borderline applicant, best advice I can give you is do nothing.

Lay low, make sure those new accounts do not report anything resembling high utilization for the next 2 months, and hope for the best. 

[Anonymous]

Thank you so much for reading and responding. That CSP application was actually an impulse one as it's a card I've really wanted. I'm used to instant approvals, so once I received the "we'll let you know" email I was conviced it was goint to be a denial, so I decided to go for other cards. It was irrisponsible from my part, but now I know that I'm able to get approved and that I should pace myself. A lot of the DPs I've read about "Unsatisfactory relationship" have been related to defaults and things of the sort. For account closures in good standing I've read the it's "Closed by grantor" or something like that. But I defer to your judgement. Hopefully it'll work out, we'll see.

[Remedios]

"Closed by credit grantor" is annotation made on your credit report. It has nothing to do with how Chase perceives it internally. 

In a lending world, there is no "optimizing rewards", "really wanted these cards", "oops, not sure if I need it but I applied" 

It's still seen as possible signs of financial distress or churning. 

Unfortunately, part of risk mitigation for lenders is not to find out which one it is. 

None of this means your card will be closed, but the possibility is there but so is the possibility nothing happens. 

Just lay low, that's really all you can do now. 

[Anonymous]

Oh ok, that makes sense, both from my end, bu from the issuer's end as well. I'm sure this won't have any effect in this case, but after the approval I went ahead and locked my credit reports. Is this wise, does it have repercussions or does it not matter.

Thanks again, I really appreciate your input and candor.